UExcel Business Ethics 3

Question 1

Which ethical decision-making model uses the question 'What would a reasonable, prudent person do in this situation?'

Accepted Answer

The reasonable person standard

Answer

The Golden Rule approach

Answer

The utilitarian approach

Answer

The categorical imperative

Question 2

What is the primary purpose of a non-disclosure agreement (NDA) in business?

Accepted Answer

To protect confidential business information from being shared with outside parties

Answer

To prevent employees from forming unions

Answer

To ensure customers cannot sue for defective products

Answer

To limit executive compensation disclosures

Question 3

Price-fixing between competitors is considered unethical and illegal because it:

Accepted Answer

Eliminates fair market competition and harms consumers by artificially inflating prices

Answer

Reduces company profits over time

Answer

Makes it harder for new companies to raise capital

Answer

Violates accounting standards

Question 4

What ethical principle is violated when a company dumps toxic waste in a developing country to avoid US regulations?

Accepted Answer

The universality principle — applying different standards to different populations based on profit motives

Answer

The principle of beneficence only

Answer

The principle of autonomy only

Answer

The principle of nonmaleficence only

Question 5

What is 'at-will employment' in the US context?

Accepted Answer

Employment that can be terminated by either party for any legal reason at any time

Answer

An arrangement where employees set their own hours

Answer

A contract guaranteeing lifetime employment

Answer

A temporary employment arrangement lasting exactly one year

Question 6

Which of the following best describes the concept of due diligence in business?

Accepted Answer

Thoroughly investigating and assessing risks before entering a business deal or transaction

Answer

Paying employees on time

Answer

Following all government regulations

Answer

Disclosing all company information to the public